Every year, hundreds of thousands of Americans decide to move into a smaller home, otherwise known as downsizing. Doing so allows them to spend less time cleaning, less money on utilities, and may even give them the ability to live without a mortgage. Here are four signs it’s time to downsize:
Too Many Empty Rooms
If you have several empty rooms in your home, it may be time to consider moving to a smaller abode. When you downsize, you won’t need to deal with cleaning, heating, cooling, and lighting sizable spaces that you hardly ever use. Instead, you will be able to enjoy your entire home without wasted space.
Less Disposable Income
Your housing expenses should not be so high that you have hardly any money left over to save or enjoy yourself. Ideally, your total costs, including mortgage payments, utility bills, and maintenance fees, should make up no more than around 30% of your total monthly budget. If they exceed this percentage, you may want to consider downsizing to reduce costs.
The Kids Have Moved Out
A three- or four-bedroom house may have been a necessity while your children were still at home, but once they find their own place to live, you might need to downsize. You don’t need to move into a one-bedroom condo, but downsizing to a two-bedroom home will allow you to save money while still having space to accommodate your kids if they decide to visit.
It’s Nearing Time for Retirement
If you have been living in your home for several decades, you have built up quite a lot of equity in the property. You may even own it outright. When it comes time to retire, you can access that equity by selling your house and moving into a smaller one. The money that is left over after your purchase can be used to fund vacations, health care, or any other expenses you encounter in your retirement.